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of <h1>Arbitrator appointed in payment dispute between consultancy and museum clarifies arbitration clauses and resolves jurisdictional issues.</h1> <h3>Design Team Consultants (P.) Ltd. Versus Salar Jung Museum</h3> The Court appointed a sole arbitrator to adjudicate a payment dispute between a consultancy concern and a museum, emphasizing the failure of the museum to ... Arbitrators Issues:1. Interpretation of arbitration clause in an agreement related to consultancy services for construction.2. Dispute over payment terms and amounts between the parties.3. Change in status of consultancy firm and its impact on contractual obligations.4. Jurisdictional issues regarding the appointment of an arbitrator.Analysis:1. The petitioner, a consultancy concern specializing in architecture and interior designing, entered into an agreement with respondent No. 1 containing an arbitration clause. The dispute arose when the respondent unilaterally reduced the cost estimate for a construction project, leading to discrepancies in payments made to the petitioner. The petitioner sought appointment of an independent arbitrator to resolve the payment dispute.2. Respondent No. 1, represented by the Director of the Museum, contested the petitioner's claims by stating that the initial cost estimate was never approved by the Board. They argued that the contractual relationship with the consultancy firm expired, and a new company had taken over the remaining work. Respondent No. 1 claimed that the petitioner's petition was misconceived and raised objections regarding jurisdiction for arbitration.3. The respondents argued that the change in the consultancy firm's status necessitated a fresh agreement with an arbitration clause, which was never executed between the new company and respondent No. 1. However, the petitioner contended that the new company had taken over all assets and liabilities of the former, as evidenced by documents indicating the transfer of agreements and responsibilities. The Court rejected the respondents' arguments, citing the transfer of assets and liabilities as sufficient grounds to uphold the arbitration clause without a new agreement.4. In light of the arguments presented, the Court appointed a sole arbitrator to adjudicate the payment dispute, emphasizing the failure of the respondents to appoint an arbitrator despite communications from the petitioner. The arbitrator was directed to make an award in accordance with the law, with the parties instructed to appear before the arbitrator on a specified date. The Court also determined the arbitrator's fee, to be shared equally by both parties.This judgment clarifies the interpretation of arbitration clauses in consultancy agreements, addresses payment disputes, considers the impact of status changes on contractual obligations, and resolves jurisdictional issues related to arbitrator appointments.
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